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MARIJUANA Regulation in DENVER

MARIJUANA Regulation in DENVER. Marley Bordovsky Assistant Director Prosecution & Code Enforcement Denver City Attorney’s Office. Overview. What challenges has Denver confronted over the past 1-1/2 years Why is there still a black market for marijuana? Open Blast Hash Oil production

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MARIJUANA Regulation in DENVER

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  1. MARIJUANA Regulation in DENVER Marley Bordovsky Assistant Director Prosecution & Code Enforcement Denver City Attorney’s Office

  2. Overview • What challenges has Denver confronted over the past 1-1/2 years • Why is there still a black market for marijuana? • Open Blast Hash Oil production • Non-licensed grows • Home grows • Pesticide contamination

  3. HOW DID WE GET HERE?MEDICAL MARIJUANA IN COLORADO • 2000: Voters passed Amendment 20 to the Colorado Constitution • Amendment 20 allowed for the medical use of marijuana to persons suffering from debilitating medical conditions and their primary caregivers • Authorized patients or primary caregivers to possess limited amounts of marijuana • Distribution of marijuana was still illegal in Colorado • The world of medical marijuana remained unregulated for another 10 years

  4. RECREATIONAL MARIJUANAHOW DID WE GET FROM MEDICAL TO RECREATIONAL? • 2012: Amendment 64 was petitioned onto the ballot and added an amendment to the Colorado constitution legalizing the personal, private use of marijuana • Passed in Colorado by about 55% of the vote & in Denver by 66% • Allows adults over 21 to: • Possess up to one ounce of marijuana • Possess and grow up to six marijuana plants, only 3 of which can be flowering • Transfer up to 1oz of MJ between adults without payment • Private consumption of MJ • Assist another adult in any of these acts

  5. RETAIL MARIJUANAColorado has a dual licensing system • The Colorado Retail MJ Code (C.R.S. §12-43.4-101 et seq) Licenses and regulates four types of retail MJ businesses: • Retail Marijuana Stores • Retail Cultivation Facilities • Marijuana Products Manufacturers • Marijuana Testing Labs

  6. The Marijuana Enforcement Division (MED) • MED operates within the Colorado Department of Revenue • Promulgated separate rules: • Medical (1 C.C.R. 212-1) • Retail (1 C.C.R. 212-2) • MED was created by state statutes: • Colorado Medical Marijuana Code C.R.S. §12-43.3-101 • Colorado Retail Marijuana Code C.R.S. §12-43.4-101

  7. Denver Department of Excise and Licenses • MED operates within the Colorado Department of Revenue • Promulgated separate rules: • Medical (1 C.C.R. 212-1) • Retail (1 C.C.R. 212-2) • Issues and regulates all local licenses: • Denver Medical Marijuana Code D.R.M.C. §24-501 • Denver Retail Marijuana Code D.R.M.C. §6-200

  8. Denver Marijuana LandscapeWhat did all of this mean for Denver? • Licensed (medical and retail, taxed and regulated) • Grows • Stores • MIPS • Testing Facilities • Non-licensed (locations mostly unknown, not supposed to be for profit, not taxed) • Illegal Operations • Medical MJ Collectives • Retail MJ Collectives • Caregivers • Home Grows

  9. Licensed marijuana in Denver • As of June, 2015, there were 1014 marijuana business licenses, operating out of 439 unique locations. • Some locations have several licenses and license types at one location • E.g., One location could have both medical and retail grow licenses, a MIP license, and a retail and medical store license

  10. Denver Marijuana LandscapeDenver’s Response to Problems in the Realm of Non-Licensed Marijuana • Non-licensed (locations mostly unknown, not supposed to be for profit, not taxed) • Illegal Operations • Medical MJ Collectives • Retail MJ Collectives • Caregivers • Home Grows

  11. Why do we continue to have problems?The Black Market • “Mexican ditch weed” (3-4% THC) = $300/lb • Colorado-grown MJ (25%+ THC) = $2500/lb (in Colo) • Colorado-grown MJ on the East Coast = $6000/lb

  12. “HASH OIL”HOW ARE THOSE BROWNIES REALLY MADE?

  13. Solvent-based Extractions • Given the amount of flammable solvents being used in these extraction processes, these operations are more properly suited for a “Manufacturing – Heavy” zone district • And should never be allowed in residential or unregulated locations • Denver is currently revising its zoning code to address this problem

  14. HASH OIL EXPLOSIONSWhat about making hash oil in non-licensed places? • Since January 2014, there have been 32+ hash oil explosions throughout Colorado • Eight explosions in Denver • Seven have been in unlicensed facilities

  15. HASH OIL EXPLOSIONSThe dangers of extraction…. • Since January 2014, there have been 32+ hash oil explosions throughout Colorado • Eight explosions in Denver • Seven have been in unlicensed facilities

  16. Hash Oil ExtractionsHow did Denver respond? • It shall be unlawful for any person to process or manufacture marijuana concentrate in the city by any means other than water-based or food-based extraction, except in a licensed medical marijuana-infused products manufacturing facility or in a licensed retail marijuana products manufacturing facility.

  17. Non-licensed Marijuana GrowsWhat’s this all about? • Amendment 20 • Patient can grow up to 6 plants (but more if….) • Caregiver can grow up to 6 plants for up to 5 patients (but more if….) • Amendment 64 • Person over 21 can grow up to 6 plants • Person over 21 can assist another person grow their plants • Denver’s experience • Warehouse space being converted into massive, non-licensed grows • Electrical, building, structural, fire, sulfur burns • Huge potential for criminal activity and diversion to black market

  18. MASSIVE NON-LICENSED GROWSWhat are we seeing? • Illegal Operations • Crime and Safety Issues • Physical Hazards • Fire • Electrical • Chemical/Environmental Hazards • Hash oil explosions • Air Quality (SO2, CO2) • Mold • Pesticides • Odors

  19. COMPLICATIONSDangers in Unlicensed Grows • Water – large amounts (damage) • Water + heat + humidity = MOLD • CO2 – 4 times the CO2 can result in 4 times the yield • Detached venting • CO2 generators/burners/bottles • Sulfur – burned to control insects • When sulfur is burned, it creates sulfur dioxide • When sulfur dioxide mixes with enriched CO2, it creates hydrogen sulfide

  20. Unsafe Conditions – Examples • Unsafe security features to protect product (bars on windows, doors welded shut, barbed wire) • Hinders emergency egress • Delays fire attack Steel plating over windows Blocked exits

  21. Unsafe Conditions – Examples • Hazardous materials storage and use, hazardous operations and processes • Explosions, advance fire conditions

  22. Massive Non-Licensed GrowsHow did Denver respond? • Limit the size of non-licensed, non-residential grows to 36 plants within one zone lot • It shall be unlawful for any person, alone or in concert with other persons, to possess or cultivate more than thirty-six (36) marijuana plants on any zone lot in the city, except in a licensed marijuana cultivation facility • It shall be unlawful for any person who owns, manages, operates or otherwise controls the use of any zone lot to allow more than thirty-six (36) marijuana plants to be possessed or cultivated on the zone lot, except in a licensed marijuana cultivation facility • Defines a zone lot as a minimum of 3,000 square feet • To prevent artificial creation of additional zone lots to get around intent of ordinance

  23. What about pesticides? • Denver Fire became aware of pesticides in cultivation facilities • Department of Environmental Health began investigating these concerns and put holds on marijuana plants/product in 11 grows • Concern about pesticide contamination that could pose a risk to public health • Denver reached out to the state for guidance and found that no one on the state level was doing anything

  24. Pesticides • Holds – not immediate condemnation • Denver worked closely with pesticide program at Department of Agriculture • Two grows filed lawsuits • Finally EPA came to the table • EPA testified from Washington DC at our hearing • Judge ruled in favor of Denver – we were “absolutely within our authority” to protect public health by placing the holds on this potentially contaminated crop

  25. Pesticides • With no action by the state, Denver continued to take action to protect the public health • Many challenges on both the state and federal level • State preemption issues • Jurisdictional challenges • Laboratory issues / MED • EPA working with CDA on “Special Local Needs”

  26. Resources • Denver Marijuana Information website www.Denvergov.org/MarijuanaInfo • Colorado Pesticide Use on Marijuana www.colorado.gov/pacific/agplants/pesticide-use-marijuana-production • Colorado CDPHE Medical MJ Program C.R.S. 25-1.5-106 • Colorado CDPHE MMJ Health Research C.R.S. 25-1.5-106.5

  27. QUESTIONS?

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